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Impressive jump for index in third quarter.

Impressive Jump for Index in Third Quarter

Another post-crash high for MBA index as it soars 86 points in quarter.

Despite profit-taking late in the quarter, the Modern Brewery Age Stock Index put the cap on another post-crash high, as our index of six major brewing concerns combined for an 86-point jump to conclude matters at 2321.11 for the three-month period ended September 29.

Flexing its muscles once again, the widely-monitored Dow Jones Industrial Average also elevated to an all-time high of 2752.09 on Friday, September 1. The Dow Industrials finished our three-month lookout at 2682.82, a more than 10-percent leap.

The following companies were pasted on the headlines last quarter. * Adolph Coors Co. announced that it had agreed to acquire many of the assets of The Stroh Brewery Co. The buyout, if approved by federal officials, would position Coors as the nation's third-largest brewer with a market share of 19 percent.

Said Peter Coors, president, Coors Brewing Co., "We believe that this acquisition provides us with a real opportunity to achieve our vision of becoming a major, long-term factor in the U.S. brewing industry."

Coors gained $4.63, or 25 percent, and claimed the largest dollar and percentage-gained honors for the period.

* Anheuser-Busch Cos. finalized the details of its acquisition of Harcourt Brace Jovanovich's theme parks, including the popular Sea World. Industry analysts have estimated that the acquisition will triple the size of A-B's theme park business, which generated 1988 revenue of about $175 million.

Separately, the St. Louis-based brewing giant recorded better than expected earnings for the second-quarter. A-B gained $1.63 a share, or 3.9 percent for the period, to finish at $43.38 a share.

* Molson, meanwhile, gained an average of 1.6 percent between its Class A and B as healthy earnings reports egged investors on. Specifically, Molson earnings rose to $35.8 million from $29.9 million in the same quarter in 1988. The gain translates to an 18-cents-a-share bolstering. Both classes of Molson climbed to new annual highs during the period before mild profit-taking took its toll late in the period.

In other news, Boulder Beer was removed from our stock chart due to lack of financial information. And in dividend news, A-B upped its annual dividend from 72 cents a share to 88 cents a share. Likewise, Labatt hiked its annual payout by four cents to 74 cents.
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Title Annotation:Modern Brewery Age Stock Index
Publication:Modern Brewery Age
Date:Nov 20, 1989
Words:401
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